Under the fair value through other comprehensive income model, investments are reported as long term assets
A) depending on the value and risk of the investment.
B) depending on the balance in the accumulated comprehensive income account.
C) only if the intent is to sell before maturity.
D) depending on management intent.

Question

Quizplus · Accepted Answer

Under the fair value through other comprehensive income model, investments are classified as long-term assets based on management's intent to hold them for a period of time, rather than the immediate realization of gains or losses. This classification does not depend on the value and risk of the investment, the balance in the accumulated comprehensive income account, or the intent to sell before maturity.

Under the Fair Value Through Other Comprehensive Income Model, Investments